MVIRDC World Trade Center (WTC) Mumbai organised its first-in-series webinar on ‘Impact of Covid-19 on Global Business with Specific Reference to Healthcare Sector’ on April 9, 2020. Mr. Arun Sehgal, Chairman and Managing Director, Chempro Group of Companies said, “India has in place a conducive policy and excellent manpower to benefit from the expected USD 12 trillion global healthcare market by 2022. We need to attract technology and investment from global companies. In post Covid-19, I expect Indian goods to have preferential treatment over China in the world market. India should go all out to grab this opportunity.”
Mr. Sehgal said, “79 per cent of USD 8 trillion market is in healthcare services, followed by pharmaceutical drugs and medical equipment, biologics and veterinary health. The future growth is expected from biologics (14 percent) and veterinary healthcare (11 percent). Post Covid will create greater demand for hospital equipment, protective gear for general public and medical staff and better infrastructure for testing services to handle contagious disease-based crisis.”
Mr. Sehgal said, “The future business architecture will change. Instead of single manufacturing site in China or India, it could bring about setting up multiple manufacturing sites across the world depending on free trade blocs that are already in existence. Countries with higher domestic market demand and availability of higher skilled population will attract investments in any trade bloc. So instead of free movement of goods we will now see free movements of skilled manpower and capital.
Mr. Sehgal said, “Countries will explore self-sufficiency of essential lifesaving products, devices and equipment which can lead to more production sites in a joint venture mode. It is important to look at reducing import content in products already manufactured in domestic markets. Digital transformation to deliver medical products and services will increase and provide the impetus to logistics and e-commerce business. Conducive tariff structures that favour domestic production will create conducive environment for technology imports if needed.
Approximately, 70 per cent of Indian APIs is dependent on China for key raw material, which will witness a change in future, if Indian government creates favorable protection for indigenous producers to manufacture API ingredients domestically. Cloud-based data storage, AI, robotics, advance analytics, machine learning and digital applications will create early disease detection. Expected growth in biologics sector will create scope for logistics companies engaged in cold chain shipping. There will also be scope for contract research and drug development companies, added Mr. Sehgal.
Captain Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai said, “The pandemic has created an unprecedented growth in demand for bulk drugs, drug formulations, equipment used in hospitals and diagnostic labs, personal protective products ranging from hand soap, sanitiser to face masks and coveralls.